How artificial intelligence and machine learning is taking over the supply chains of modern industries and the shaping of modern supply chain.

1. ARTIFICAL INTELLIGENCE, MACHINE
LEARNING AND SUPPLY CHAIN
AI, ML AND SCM

2. ARTIFICIAL INTELLIGENCE:
• Ability exhibited by a machine to perform complex intellectual tasks
that were, until recently, devoted to humans
• Chess game (1990’s), Speech processing (2000’s), Go game,
Chabot, autonomous vehicles (2010’s)
MACHINE LEARNING:
• Scientific and technical field aimed at giving machines the ability to learn how
to perform a complex task
• Today, can complete complex although specialized tasks:
• Image interpretation, Speech recognition
• Predict consumer purchase (recommender systems)
• Forecast sales and demand (supply chain systems)

3. SUPPLY CHAIN MANAGEMENT
• A supply chain consists of all parties involved, directly or indirectly, in fulfilling a
customer request.
• The supply chain not only includes the manufacturers and suppliers, but also
transporters, warehouse, retailers and customers.
• Within each organisation, such as a manufacturer, the supply chain includes all
functions involved in receiving and filling a customer request.
• These functions include, but are not limited to, new product development,
marketing, operations, distribution, finance and customer services.

5. AI, ML AND SUPPLY CHAIN
• Demand Forecasting and Inventory Planning
• Materials Sourcing
• Manufacturing Decisions
• Quality Assurance
• Delivery and Logistics

6. BIG DATA 7 V’S:
• Volume
• Velocity
• Variety
• Variability
• Veracity
• Visualization
• Value

7. DEMAND FORECASTING : LEARNING THE MODEL
Past sales data
Past context
data
Past marketing
operations
Past exogenous
data
Machine Learning:
what is the
simplest model f(.)
that explains well
the demand?
Past demand=
f(sales, Context,
MO, Exo)
f(.) Past
demand

8. DEMAND FORECASTING: EXPLOITING THE MODEL
Future context
data
Future marketing
operations
Future exogenous
data
f(.) Demand
forecast

9. NEW PRODUCT FORECASTING :
LEARNING
Clustering Learning

10. NEW PRODUCT FORECASTING : EXPLOITING THE MODEL
New product features
• Colour = XXX
• XXXXX = XXX
• XXXXX = XXX
• XXXXX = XXX
Sales forecast

11. ARTIFICIAL INTELLIGENCE IN
PROCUREMENT
• AI is helping drive cost reduction and compliance agenda through
procurement by generating real time visibility of the spend data
• The spend data is automatically classified by AI software and is checked
for compliance and any exceptions in real time

12. ARTIFICIAL INTELLIGENCE
WAREHOUSING
• Use of autonomous fork lifts is “reaching a level of maturity” in warehouse
operations
• Warehouse planning

13. DELIVERY AND LOGISTICS : SELF-DRIVING
VEHICLES
• Self-driving delivery trucks on public roads

14. AI : ELIMINATING CORRUPTION
• The AI algorithm analyses HR and finance data, procurement
requests, tender approvals, workflows, non-financial data like
government employee’s family details and vendor employee to identify
potentially corrupt or negligent practices

15. QUESTIONS…?